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Innovation and Technology

INTRODUCTION
Entrepreneur:
1
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supplies financial capital
3
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decision maker
5
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organizer and coordinator of economic resources
Manager vs
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Potential Entrepreneurà
CONCEPTION
(Total Early-State Entrepreneurial Activity)
2
...
Owner-Manager of a New Business
PERSISTANCE
4
...
Necessityàthe different economies
Factor-driven: Algeria, India, Iran, Vietnam—highest TEA
Efficiency-driven: Croatia, Poland, Mexico—mid TEA
Innovation-driven: Italy, Japan, USA, Korea—lowest TEA
e
...
Swiss 5% TEA—more driven by opportunity

Nicolas & Shane (2006) Entrepreneurs born
But enterprising individuals (people willing to
accept) risk that recognize new business
opportunitiesàcan become entrepreneurs
Analyzing a Business Opportunity
Existence of opportunitiesà
Identification of opportunityà
Essential impact factorsà
Shaping utilization
Opportunity Recognition
• External factors
• Industry relevance: life cycle, structure
• Porter’s 5 forces
An opportunity should…N
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D
...
E
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line/mgmt
...

product based vs
...
matrix
Innovation Rule of Thumb
Need to combine resource based and market
based innovation strategies
Inside-outà developing resources to meet
market
Outside-inàlooking in market to develop
resources
Kurt’s Force Field Analysis:

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Innovation and Technology
S-curve in Technology

Red Ocean vs
...
) •
Investments in existing technologies • Products based on the new
technology cannibalizes established firm’s sales (extra cost and no
extra revenue) • Do incremental changed once threat comes •
Organizational obstacles when changing the core technology

The Life Trajectory of Technological Revolution

(2) Cost overlapping Buyer Value= Value Innovation
(3) Four Actions Framework: ERRC

3 Stages of Innovation: Utterback-Abernathy Dynamic
Model

Fluid phase (b4 establishment of DD): start-ups have lower
entry barriers; can operate on small scale; can operate w/o
adopting the same design as established firms
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Innovation and Technology
(4) Reach the Non Customers: Beyond Existing Demand

CASE STUDY NEARSPACE: OPPORTUNITY
RECOGNITION
•
Entrepreneurship not always a matter of precipitous
(rush) discovery
...

CULTURE & STRATEGY
• having a simple set of values and committing
to them, is actually a way of getting things done
faster
• really focusing on every person at the
company, not just their work but them
personally, requires a huge information network
• a warrior spirit, a servant’s heart, a funluving attitude (the way Southwest spells “love”)

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Innovation and Technology

INNOVATION—WHAT & WHY

4 DIMENSIONS OF INNOVATION SPACE
1
...
process: changes in the ways in which they are
created and delivered
3
...
paradigm: changes in underlying mental models
which frame what the organization does;
implementation of a new organizational method
in the firm's business practices, workplace
organization or external relations
...


DIMENSIONS OF INNOVATION

COMPONENT & ARCHITECTURAL
INNOVATION (HANDERSON & CLARK)

RESOURCE COMMITMENT vs
...
g
...
old)
e
...
low cost carriers, direct line insurance

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Innovation and Technology

INNOVATIVE ORGANIZATION

APPROPRIATE ORGANIZATION STRUCTURE
There is no single 'best' structure, for successful organizations
tend to be those, which
develop the most suitable 'fit' between structure and
operating contingencies
...

Shared vision, leadership and the will to innovate
2
...

Key individuals
4
...

High-involvement innovation
6
...

External focus
Structure includes: parallel working; early involvement
of different functional specialists; closer market links; user
involvement
TRANSFORMATIONAL LEADERSHIP
Leadership that, enabled by a leader's vision and inspiration,
exerts significant influence; greater impact on performance in
research environment than administrative, although both
have a positive effect
TRANSACTIONAL LEADERSHIP
Leadership based on an exchange process, in which followers
are rewarded for good performance and punished for poor
performance; positive effect in administrative and negative
in research environment
...

Roles of key players: (champion model)
1
...
Organizational sponsor (pull strings, often
board member
HIGH INVOLVEMENT INNOVATION (HII)
• Quality miracle - Japanese manufacturing kaizen - continuous improvement - Toyota
• High involvement innovation (HII) business
performance ↑ turnover per employee
↑employees become receptive (vatbaar) to
change itself
• Not a quick fix but a major strategic
commitment
• Misnomer, concentration still on shop-floor
activities
• Most HHI takes place on an 'in-line; basis
EFFECTIVE TEAMWORKING
Groups have more to offer than individuals in
terms of both fluency of idea generation and
in flexibility of solutions developed; teambuilding
is critical of project success
- Bridging boundaries within the organization in
dealing with inter-organizational issues
- Enable achieving the kind of decentralized and
agile operating structure; AGILITY IS KEY
ALSO ACCORDING TO INNOVATION
FACTORY as well as CREATIVE CLIMATE
Key elements: clear task and objectives,
effective leadership, balance of roles that match
with individual styles, effective conflict resolutions,
continuing connection with external organization
THE LEARNING ORGANIZATION
MECHANISMS
• Training and development of staff
• Development of a formal learning process
based on a problem-solving cycle
• Documentation
• Display
• Challenge existing practices
• Use of different perspectives
• Reflection – learning from the past
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Innovation and Technology
INNOVATION PROCESS MODELS

SIDE NOTE: INNOVATION IS PUBLIC SECTOR
Non-profit and Public Sector Organizations use commercial
use innovation to gain market share and attention through
offering new things or delivery in a new way; social businesses
use innovation to tackle challenges; by its nature, public
sector innovation is “contested” amongst stakeholders;
drivers and the rewards and incentives may be absent or
different; main challenge-enabling diffusion of successful
experiments into the mainstream
FOR SME’s:
Keep high levels of informality to build on shared vision and
rapid decision-making in parallel build network linkages to
compensate for resource limitations

EXAMPLES OF INNOVATION
Product innovation example:
New design of car (Tesla), an new insurance
package for accident-prone babies and a new
home entertainment system (Playstation)
Process innovation example:
Changes in manufacturing methods and
equipment used to produce the car (Toyota
supply chain line, Ford automation process) and
the playstation (new materials, manufacturing
techniques or process changes), or in the office
precedes and sequencing in the insurance case
Sometimes the product or process emerge such
as a new jet-powered sea ferry is both a product
or process innovation
...
E
...
is a new holiday package
a product or process change
...
Innovation can take place by
repositioning the perception of an established
product or process in a particular user context
...

Paradigm innovation example:
Lego and Adidas engaging users as designers and
builders rather than passive consumers
...

5 Myths of Innovation Distorted:
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Fail occurs when no follow up, not because
of bad eureka moment
...
Open innovation the future? Only partially
and even then should be used selectively
4
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Pay is not paramount; smart companies
emphasize the social and personal driver of
discretionary effort rather than the material
...

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Innovation and Technology

HOW TECH EVOLVE, CO-EVOLVE,
ADOPTION AND DIFFUSION (w/Philip
Bubenzer)

Adaptions to the U/A Model
• Service Industries (RPC)
• Disruptive Innovation
• Competence Enhancing (Tushman)
• Architectural Innovation (ZONE 4 Architectural:
new combinations emerge around needs of different
group of users; challenge to reconfigure knowledge
source (especially for incumbents new vs
...
Concentrate on single vertical market
(industry/segment)
2
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Promote the “solution” by emphasizing the
value to pragmatists
MOORE: social ideas & adoption also can
behave like an S-curve

DISRUPTIVE TECHNOLOGIES
Disruptive innovation theory: Moving systematically
to high end expectations looking @ other dimension that
customers demand; becomes a critical decision to consider
another dimension when you reach the demanded
performance and have a different performance dimension at
that moment; the moment where customer demands meet,
customers choose different dimension eg
...
g
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g
...
g
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In times
of crisis the company needs to focus on
innovation as much as without it
...
g
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& inter
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There is a price—less privacy and less
appropriability of IP; there needs to be a
fundamental change in production knowledge
CROWDSOURCING:
A radical new way of organizing distributed
resource for the collective creation of new
value via Internet; advantages include rapid
growth (market) quality (so significant difference
b/w Wiki and Britanicca), speed (fast correction
of errors) and cost advantage
e
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Airbnb, Uber, Wikipedia, Threadless
Key Takeaway: the crowd identifies success
not by technology alone, by using an open
business model and shared value for crowds who
decide to embrace and make us part of our lives

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